March 28, 2022

Last night's Oscars turned into the Fresh Punch of Bel Air real fast. If you haven't seen it yet, Will Smith stormed the stage after Chris Rock made a joke about his wife and slapped him. He then returned to his seat where he shouted a few choice words at Rock. Where was Dr. Phil when we needed him most?

PSA: If you’re in college, we have an exciting opportunity for you to grow the Roca wave in April! Fill out this form if you’re interested, and we will send you more info. Sneak peek: Refer friends, win money. Let’s Ride!

― Key Stories

Rhino of Wall Street
Overview

• On Friday, the World Bank issued its first-ever “Rhino Bond,” which pays investors to protect an endangered species of rhinoceros
• The World Bank is an international organization with 189 member countries. It provides funding for development projects in developing countries
• The Bank is selling $150M worth of the bonds. While normal bonds pay investors semi-annually, the payouts from these will go to protect the critically- endangered black rhino in 2 South African reserves
• If the rhinos’ numbers are up by 4%+ after 5 years, a “success payment” of up to 9.2% will go to investors

Male Birth Control Makes Progress
Overview

• A male birth control pill was found to be 99% effective in mice
• Scientists are yet to develop a birth control pill for men that is considered safe and effective. Most pills target testosterone to reduce sperm count, leading to testosterone-level-related side effects
• This new pill is non-hormonal, meaning it reduces sperm creation without affecting testosterone levels
• The researchers say it will enter human trials later this year but cautioned it's difficult to know “if a compound that looks good in animal studies will also pan out in human trials”

Russia-Ukraine War Update

• On Saturday, President Biden said, “For God’s sake, [Vladimir Putin] cannot remain in power”
• His team clarified the remarks were unprepared and not implying a strategy shift: “He was not discussing Putin’s power in Russia, or regime change”
• On Friday, Germany announced it would end its dependence on Russian fossil fuels. Some say Germany, Europe's largest economy, is soft on Russia because it relies on its oil and gas
• The country's new leader, Chancellor Olaf Scholz, has taken a harder stance against Russia since replacing Angela Merkel in December

Doctors Make Paralysis Breakthrough
Overview

• For the first time, brain implants let a fully-paralyzed man communicate in full sentences
• Doctors implanted 2 microchips in the brain of a man suffering from ALS, a paralysis-inducing disease
• After multiple months of training with the chips, the man learned how to communicate through a computer via sounds, then letters, and eventually sentences. “Boys, it works so effortlessly,” he said
• He asked for a beer and to listen to his favorite band, and messaged “I love my cool son.” Before, it was unclear whether it would ever be possible for paralyzed ALS patients to communicate like this

See yesterday's results below the Wrap!

 Popcorn

Culture & Sports 

• And the Oscar for Best Picture goes to.... CODA! This is the first time the Oscars' top award went to a streaming service (Apple TV Plus)
• Good night, Cinderella! St. Peters' magical run in March Madness ended Sunday as the UNC Tar Heels routed them by a score of 69-49
• Foo Fighters drummer Taylor Hawkins died at 50 during the band's tour of South America. Multiple substances were found in his body 

• Mo Money Mo Putin: Elon Musk, officially the wealthiest person in the world, claims that Vladimir Putin is "significantly richer" than he is
• Crypto crackdown: The British government is expected to announce a new regime to regulate the cryptocurrency market in the coming weeks
• The Lost City, starring Channing Tatum and Sandra Bullock, dethroned The Batman as the top box office movie with its $31M debut

• Planet of the mosquitoes: Up to 2.4B genetically-modified mosquitoes will be released in California through 2024 to reduce diseases
• Danish soccer star Christian Ericksen scored a goal in his first international match since suffering cardiac arrest in June 2021
• Travis Scott performed publicly for the first time since the deadly Astroworld concert. He rapped "Sicko Mode" at a pre-Oscars party
• Some sunny news: Scientists have discovered new solar waves, called HFR waves, that can move 3x faster than current theories predict

― Roca Wrap

A Newsletter Exclusive

A major shift has taken place in the airline industry: Airlines have moved from buying aircraft to leasing them. In 2019, 50% of the global airline fleet was leased, up from 15% in 1990. Over 15,300 aircraft are leased globally; of those, over 500 – worth $10B – are on lease in Russia. 

That’s a problem: After Russia invaded Ukraine, the EU banned companies from supplying aircraft and aircraft parts and service to Russia. Those sanctions have set off a scramble by leasing companies to get their airplanes back. 

In the days after that, leasing companies rushed to secure their jets, oftentimes while the planes were on layovers. One Russian plane was seized as it made a stopover in Turkey; another in Mexico. As that was happening, Russia’s government ordered airlines to return all their jets to Russia. In the end, lessors recovered just 24 of the 500+ jets leased to Russian companies.

This month, Russia passed a law that allowed its airlines to seize the foreign planes and re-register them as their own. “The number one fear right now is that these aeroplanes are gone forever,” one aviation analyst told Bloomberg. “It’s becoming [clear] that these aircraft aren’t coming back,” said another. 

Irish companies stand to suffer the most. 

In the 1970s, an Irish co-founder of budget airline Ryanair began an airline leasing company, launching an industry. Today, 14 of the world’s top 15 airline-leasing companies are based in Ireland. Russia is these companies’ second-largest market (after China), accounting for 6% of their income. The most-exposed Irish airline-leasing company has leased 5% of its fleet – 152 planes worth $2.3B – to Russia.

Yet the impact will likely be felt globally: The airline-leasing industry was underpinned by treaties that guaranteed lessors the right to cross borders to reclaim aircraft from companies that failed to pay. That eliminated risk for leasing companies, allowing them to secure investment and lease aircraft to less developed countries. The result was a boom in global travel. 

Russia has violated those treaties, putting that system in doubt. “This is the worst-case scenario, where a country unilaterally takes control of an aircraft’s register,” one aviation consultant told the Financial Times. “It has never really been contemplated.”

Many leasing companies have accepted that their jets are gone, and are now turning to insurance to get some money back. It’s unclear whether insurers will be willing to cover the losses. If not, lessors will lose billions of dollars.

And for the Russian airlines it’s also uncertain what will happen next. New sanctions have banned them from operating in much of the world. Maintaining the aircraft will require expertise and parts that are difficult, if not impossible, to find within Russia. The companies they would rely on are banned from doing business with them.

Russia may have seized 500 jets, but it may not be able to use them. 

 Games

1. "Our whole universe was in a hot, dense state"
2. "So no one told you life was gonna be this way?"
3. "It's a beautiful day in this neighborhood, a beautiful day for a neighbor"
4. "Now, this is a story all about how my life got flipped-turned upside down"

 Roca Clubhouse

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― Final Thoughts